EXECUTIVE SUMMARY
The organization being chosen to carry out such change management process analysis is the computer industry and the organization company in focus is amicably regarding DELL Computers. Thus, change processes in business organizations involves the reality behind every process and is considered as a daily cycle in dealing to various issues and concerns of the organization as it depends on the managements actions and its respected change of nature in dealing with effective change management as directed at overcoming anger and resentment evolving into a program that supports acceptance and internalization. As a consultant commenting on the organizational change process choosing DELL organization as the focal point for discussion and analysis for this presentation, my role to the organization is to have a clear emphasis dealing to the external and internal change drivers and other essential points needed for the realization of purpose for this report presentation for the senior management of the DELL in providing factual information that will be able to give a better substantive spontaneity of understanding of such organizational state needed for selection and the application of the appropriate management models as well as concepts per se.
This essay utilized Dell Corporation as the model organization to review its present visions for renewed organization and how they dealt with critical situations. From the analysis, key trends in the change management strategies of Dell Corporation were then identified, how they worked and their effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these change management strategies with regard to their suitability to critical situations, during which the internal capabilities of these change management strategies in relation to the strategy being followed by Dell Corporation was determined also. An overall analysis of the performance and effectiveness of the change management strategies was also conducted to assess and compare the capabilities of these change management strategies with those of others. Gaps in the change management capabilities and environment were then identified.
Finally, several choices of strategies to improve the change management strategies of Dell Corporation as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.
INTRODUCTION
Change management can be defined as the efficient and effective implementation of the policies and tasks necessary after takeover or merging of one or more companies or organizations. Change management focuses on the careful management of the processes involved in the gradual adjustment of the “new” management and its workforce (1999).
More often than not, the newly merged or acquired business entities don’t really have an easy time adjusting to the changes brought about by the acquisition or take-over. As a result, these entities engage in activities that are somehow resisting to changes. Therefore, the major activities of the company such as the manufacturing of products, product development, production and distribution become severely hampered.
However, change management deals with all operations done within companies and organizations. Activities such as the management of purchases, the control of inventories, logistics and evaluations are often the focus of change management. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, change management includes the analysis and management of internal processes (1996).
VISION FOR RENEWED ORGANIZATION
DELL was founded in 1984 by Michael Dell on a simple concept: that by selling computer systems directly to customers, DELL could best understand their needs and efficiently provide the most effective computing solutions to meet those needs. DELL is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures and is by far the most renowned name in the computer industry for customers worldwide. The mission of DELL is “to be the most successful computer company in the world at delivering the best customer experience in markets we serve”, by means of meeting customer expectations of highest quality, leading technology and company accountability and support as well as flexible customization capability, and financial stability.
DELL has approximately 39,000 employees around the globe and has a large and diverse corporate organization. DELL company has lot of computer
systems in many locations such as Austin, Texas and Nashville that could be of high staffing cost and value that has contributed in maintaining sales to over thirty four offices around and then serve as the front line in terms of selling its products and services worldwide. In human resource side, DELL conducts training for all employees in order to reduce absenteeism and human errors as well because the high-quality staff is required in enhancing the best quality performance of the company.
Dell Corporation aims for change management in order to pursue sustainable growth as a broad market leader in mobile computing as well as for segment leadership. In both cases, the Dell brands will play a crucial part. Dell Corporation is able to establish its broad leadership usually by acquiring other strong mobile computing companies and their products, which are then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforces the positions of the various Dell products. This practically results in economies of scale that is able to create a distribution network for both the local and international Dell products. If a market is already in the control of other mobile computing companies, Dell Corporation devotes its attention towards the development of a premium segment with its various Dell products.
The vision of Dell Corporation for renewed organization is to secure the growth of the business in a sustainable manner, while at the same time constantly improving the company’s profitability. The strategy to achieve this involves four elements:
SCOPE OF CHANGE
A. The Change for Staff
Employees basically refer to people who work for another in return for wages or salary (2004). Legally, an employee is referred to a person hired to provide services to a company on a regular basis in exchange for compensation, and who does not provide these services as part of an independent business (2004). However, (2004) stated that employees are more than any of those definitions. Employees are the lifeblood of the organization because they are the ones who provide products and services that define corporations, organizations and government entities ( 2004). They are referred to as the most precious assets of the organization because without them, the organization is crippled and cannot function effectively.
Because of the important role of employees, Dell Corporation has the responsibility to motivate them so as they can function more effectively. Theories of motivation such as Maslow’s theory, Alfelder’s theory, McClelland’s theory, and Herzberg’s theory ( 1999) explain why employees and staff should be motivated and why organizations should take this concept into consideration. But what really constitutes effective employee motivation? Building a positive communication with employees is important because they are the organization’s best ambassadors or loudest critics, depending on how fast they get relevant information and the context in which it is received (1998). Information consistency affects the success of the company and if it fails to communicate information internally and externally, the reputation of the company may fall. Communication basically uplifts the morale of an employee as it makes them feel that they are valued by the organization. This also builds employee loyalty and satisfaction.
B. The Change for System
There was a period when Dell Corporation was generating its first surplus which was the effect of the cost-cutting activities imposed by their management. This was the time when Dell Corporation had also realized that the organization needs to pay attention on it customer service so as to ensure that the industry will continue to earn profit (1998). In order to initiate such change, Dell Corporation hired Consultants to gather data about staff and customer attitudes. The result of such evaluation shows that there is a significant gap between what the staff is providing and what the customer actually needed. Hence, another management initiative was the change of the system from staff- oriented to customer oriented industry through the creation of “customer is king” culture within the organization.
C. The Change for Strategy
The organizational structure of Dell Corporation also changed to a much flatter and slimmer structure. Five sections of the industry are directly reporting to the CEO and eleven profit centers were created. This structural alternation aims to enhance the staff integration and communication, within Dell Corporation. The performance-related pay was also introduced by the management based on an appraisal system which values the significance of customer service and organizational cohesion. This change also includes major investments in ground facilities and IT in order to adhere to the needs of its customers.
SPEED OF CHANGE
Although the management change had been able to enhance the competitiveness of Dell Corporation, this does not mean that the company felt the changes immediately and became free from any other problems and issues. Definitely, the employees and staff took time before they became fully adjusted with the changes as Dell Corporation imposed a more comprehensive human resources management through its Staff Development Initiative. However, not all employees had been able to meet the objective of such initiative. Hence, the problem encountered by Dell Corporation during and after the management change is a concrete evidence of the lengthy time that the company experienced getting accustomed with the changes.
PROPOSED ACTION
Strategy 1: Product Development
The retailers in the United States represent Dell Corporation’s largest sales and marketing channel which encompass national and regional office supply stores and mass merchants. Distributors represent Dell Corporation’s second largest United States channel and generally sell to both traditional and Internet resellers and retailers. In Europe and Asia, Dell Corporation’s market share is still relatively high. Dell Corporation has more than 100 international distributors located worldwide.
Strategy 2: Product Penetration
The company uses the online store as a venue to sell its products. This is accomplished through the use of e-marketing campaigns and product bundles. The company is able to build awareness of its products and brands through mass media advertising, public relations efforts and branded Internet properties. The company also makes it a point to receive feedback from its customers through market research. The company then uses these feedbacks to refine its product development efforts and marketing strategies. The company also initiated an e-commerce strategy to increase online sales and provide new innovations in business class which increases customer satisfaction.
Strategy 3: Enhancement of Operations / Efficiency and Effectiveness
Dell Corporation’s direct to customer model solve the problem for additional capital for marketing and sales. By selling directly to consumer it eliminated retailers along the way. One advantage of this kind of system is that the firm is continuously in contact with its customers and they are benefiting in two areas concerning sales and marketing, seeing sales trends and learning about unmet costumer demands.
Strategy 4: Technology Improvement
Technology is an important source of competitive advantage. And this is considered a strength of Dell because the firm enjoys better access to technology. Dell introduces the latest relevant technology much more quickly than companies with slow-moving indirect distribution channels ( 1991).
LEADERSHIP
The existing style of leadership DELL uses is the ‘’transformational leadership style’’ as the CEO Michael Dell applies this particular style of leadership that involves inspiring employees to transcend their own self interests and work for the larger good of DELL company. ( 1986) DELL articulates a vision that convinces subordinates to make important and positive changes in business process and management and relates to profound belief on beliefs and values that goes beyond its changes and achieving ways to transcend proper decision making engaging through such utilization factors as DELL utilizes the IT as a factor for the successful running of its business. (1985) The acquisition by means of using some of the leadership styles as DELL will make sure to value their customers and business partners in a form of interpersonal style of expressing to a level of virtually integrated as if they’re inside the company and by having customer information as used for analyzing and forecasting customer demand and achieving the mass customization (1985). DELL expect that the success would be forever and they expect that other companies might implement such leadership models and believed that Information Technology would play a vital role in the success of the business as well as the centerpiece of the business per se.
COMMUNICATION CHANGE
Communication is important in Dell Corporation because its business environment is the place where many interactions are needed, and where much information is acquired. It always involves openly competitive activity, in which working professionals in Dell Corporation debate issues, defend positions, and evaluate the arguments of others. Most working professionals in Dell Corporation, particularly those in middle and upper management, routinely produce a variety of messages, many of which are in the written form of memoranda, electronic mail, letters, reports, performance reviews, instructions, procedures, and proposals. It is also argued that a fuller understanding of organizations is a vital ingredient at every forward step of the career process, and that communication is a primary element for understanding how organizations function and how members of the organization should, even must, behave in organizations if they are to advance their careers.
The practice of effective communication within Dell Corporation is also linked with the development of a healthy corporate culture, job satisfaction of employees, and the happiness and productivity of employees. Communication skills are also important to the leaders of Dell Corporation because it helps them manage the company more effectively.
CONCLUSION
It seems that the major cause of the problems encountered by Dell Corporation is due to the unplanned management changes imposed. In addition, the problems also arise because of the inadequate knowledge of its management about the use of strategic management and other management systems. This way, the empire of Dell Corporation will remain unscathed amidst the advent of consolidation and globalization.
Credit:ivythesis.typepad.com
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